Groupon Inc Earnings: Here’s Why the Stock is Rising Now

Groupon Inc (NASDAQ:GRPN) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 13%.

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Groupon Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.03 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 7.53% to $601.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Groupon Inc reported adjusted EPS income of $0.03 per share. By that measure, the company met the mean analyst estimate of $0.03. It beat the average revenue estimate of $588.92 million.

Quoting Management: “We are encouraged by our results, as our local revenues accelerated and our margins improved over the prior quarter,” said Eric Lefkofsky, Chairman and co-CEO of Groupon. “We had record mobile performance as 45% of our North American transactions came from mobile in March, and more than 7 million people downloaded our apps in the quarter.”

Key Stats (on next page)…

Revenue decreased 5.78% from $638.3 million in the previous quarter. EPS increased to $0.03 in the quarter versus EPS of $-0.01 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved down from a profit of $0.24 to a profit of $0.20 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)